This manual presents the trainee's workbook and the trainer's guidelines for the third of six modules in a teacher inservice series developed to promote the unified effort of both regular and special education personnel in understanding and applying nationally recognized practices to implement fully inclusive education for student with diverse learning abilities and disabilities. Module 3 is on skills for planning instruction in instructional teams. The trainee workbook is in the form of 44 transparency masters and 4 activities which address performance assessment, steps in designing performance assessments, examples of real-life performances and products, the Individualized Education Program as a performance assessment, establishing performance objectives, task analysis, determining performance benchmarks, performance evaluation, and discrepancy analysis in designing instruction. The manual for trainers offers specific objectives and suggested comments keyed to each of the transparencies, covering restructuring of assessment and designing of performance assessment. A pre/posttest is also included. (DB)